Opec ‘comfortable with oil market’
London, October 11, 2011
Opec is comfortable with the situation in the global oil market, the producer group's secretary general said on Tuesday as oil was trading over $108 a barrel.
Abdullah Al Badri also told reporters he saw Libya's oil output reaching one million barrels per day (bpd) in six months and the pre-war rate as quickly as one year, faster than some estimates.
"The market is very comfortable to us," Al Badri said. "The market is balanced and everything looks fine," he said, asked if prices, demand and supply were acceptable.
Oil prices were trading just above $108 a barrel on Tuesday, down from a 2011 high of $127 reached in April.
Al Badri said it was too early to say whether the Organization of the Petroleum Exporting Countries needed to change policy when it next meets to set policy, on Dec. 14 in Vienna.
Opec, like other forecasters, has been lowering oil demand estimates due to weaker economies, but Al Badri said he did not see a double-dip recession.
Saudi Arabia and its Gulf Opec allies raised production unilaterally after failing at the group's last meeting in June to convince other members to agree a coordinated increase to meet the Libyan shortfall.
Al Badri, who is Libyan and a former Libyan energy minister, reiterated he expected Opec producers to adjust their output as Libyan high-quality crude production recovers, and that buyers wouild return.
Libya pumped 1.6 million bpd before the civil war.
"In six months' time, Libya will produce one million (bpd) and in a year, 15 months or less, Libya will go back to normal production," he said.
"It will happen by itself, automatically, because of the nature of Libyan crude," he said.
"This is a very special crude and they have special customers, they have been buying it for so many years. And whatever they produce...they will refrain from buying from other sources." – Reuters